short sale, reo, fha oh my!
My husband and I are trying to buy our first home. We've looked at over 30 houses, and the one we fell in love with was a short sale...figures, right? We put an offer in on March 23. Early last week, it was discovered that the sellers had filed for a deed in lieu of foreclosure and the bank had accepted it. We figured we were dead in the water, but it turns out the bank wants to proceed with our offer. A negotiator had been working on our file, and this week it moved to another case worker. We have not had to redo any paperwork, which seems strange to me. I was concerned by the fact that the property is now owned by the bank, but they are leaving the listing agent with the property until August - looks like they want to keep the same players in place unless our deal goes dead. Am I just overly optimistic that these are all good signs? The listing agent told our agent today that she thinks they are close to accepting the deal.
If they do, we will be using an FHA loan to purchase the property. It has a cabana building in the back (like a large, one room shed, but with electric and phone hookups). Will this building be subject to the FHA appraisal? We already know that there must be water in the pool so that they can check the equipment there. This is a lot to deal with for rookie buyers like us, but the property is truly worth it. Should we be working on the mortgage paperwork yet, and locking in a rate, or just hold off a little longer? We have our inspectors lined up just in case.
Any advice for us?